More and more people have been asking me lately about HUD homes in the Green Bay area.
What are they? Can I buy one? I heard you can get great deals, how can I find them? How do I put in an offer?
Here’s your short, simple, and sweet crash course into the land of HUD homes.
First off, HUD is the U.S. Department of Housing and Urban Development. And the reason why HUD homes are different than other foreclosures is this: Someone has a HUD insured mortgage and can’t meet the payments and the lender forecloses on the home, HUD steps up and pays the lender what is owed. And that property becomes a HUD home.
HUD homes can be GREAT deals — just like other foreclosures, HOWEVER, these homes come as-is. There will be NO repairs made. This is true for ALL types of foreclosure homes. See my past post on Green Bay foreclosure homes.
For HUDs, all offers are made online. It’s quick and easy, but you do need a Realtor to do this. The first 15 days a HUD home is on the market, only owner occupants may bid on it. This means it MUST be your primary residence — at least for a year. After 15 days, and if there are no accepted bids, the HUD home opens up to all types of bidders. Investors, this means you.
What happens if your bid is accepted? Let’s start with congrats! After the cheers, we need to sign the HUD official contracts and turn in your pre-approval letter/proof of funds within 24 hours. This may seem like a short period of time to get this accomplished, and it is, BUT your Realtor should be proficient with the contracts while you should already have been in close contact with your lender and have that pre-approval handy. If you’re a cash buyer, all you need is some sort of statement proving you’ve got the funds to hand over.
I do have my SFR certification and I’ve worked HUD deals in the Green Bay area, and I will continue to work on HUD deals. If you have any questions/comments/concerns feel free to contact me. Also, go to the HUD website and take a look around. You can even see what HUD homes are listed in Green Bay and even other states!